The case arose when the American Civil Liberties Union of Maryland on behalf of public housing residents sued HUD, saying that it demolished old public housing high-rises where mostly African-Americans lived and then moved residents to equally segregated housing and poor conditions in other parts of the city.

Under the settlement, HUD will continue a program established in an earlier part of the case that moves families to mixed-income neighborhoods throughout the region. HUD will also offer incentives to private developers who include affordable units in their projects, create an online listing of affordable housing and sponsor a study to analyze housing opportunities in the region.